WEMIX, the native token of South Korean video game developer, Wemade was delisted by the nation’s four crypto exchanges on the grounds of inaccurate reporting of circulation data.
Bithumb, Upbeat, Coinone, Korbit, and Gopax — which are part of the Digital Asset Exchange Alliance [DAXA] announced on Nov. 24 that they would end the support for WEMIX on Dec. 8.
A few months prior, the group issued an investment warning that there was considerably more WEMIX in circulation than disclosed, and Wemade had agreed to work with DAXA to alleviate these concerns.
However, the situation worsened when Wemade CEO Henry Chang, speaking at an online press conference on November 25, criticized Upbit for misusing its authority by delisting WEMIX and threatened to report the exchanges to the Fair Trade Commission.
The online game publisher refused to back down and ultimately filed an injunction request in a bid to prevent other exchanges from delisting its token.
As reported by Money Today News, South Korea’s Seoul Central District Court has now dismissed the firm’s suggestion after the hearing on Dec. 2.
This implies that the four exchanges will remove the token from their platform at 3 p.m. on 8th Dec.
WEMIX Token Drop By 50%
As word of the delisting decision spread, WEMIX Communication issued a statement stating it had sincerely followed DAXA’s requests and concerns and fixed a number of problems where they felt the group’s circulating supply had been overestimated, adding:
“The team does not acknowledge or agree with the unreasonable decision made by the Digital Asset eXchange Alliance (DAXA)… It is crucial to note that the Foundation has not circulated a single WEMIX more than what we have officially disclosed thus far.”
The price of WEMIX plummeted following the news, and at the time of writing is down by over 47% with a current price of $0.35.
Meanwhile, Binance has come to the gaming firm’s aid as its legal issues have gotten worse. Wemade’s token will be kept under institutional custody by Binance Custody, the largest cryptocurrency exchange in the world.
It will manage the asset and verify its circulation volume from next week, as per Wemade Co. Ltd. Moreover, 70% of WEMIX’s total supply, which contributes to 92% of the cryptocurrency that is not in circulation, will be overseen by Binance Custody.